Exam 5: Design of Goods and Services

What is the use of information technology to control machinery?

The use of information technology to control machinery is called ________.

A product's life cycle is divided into four stages, which are:

The role of decision trees in product design is to:

Which of the following is TRUE regarding computer-aided design?

To increase service efficiency, the product should be designed so that customization is allowed as early in the process as possible.

Which of the following is a service design technique used to increase service efficiency?

What technology "builds" products by adding material layer upon layer?

An engineering drawing shows the:

Identify the external product development strategies; describe each in a sentence or two.

Value analysis focuses on preproduction design and manufacturing issues.

Products or services designed in easily segmented components are known as ________ designs.

A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n):

________ are a correction or modification of an engineering drawing or a bill of material.

Which of the following product development strategies has the rapidest product development speed?

A route sheet provides a(n):

Which of the following is NOT a service design technique used to increase service efficiency?

Identify the three approaches companies use to ensure a successful transition from development to production.

A company is deciding if it should design an advertising system for use on Twitter©. The first option is to skip out on designing, with no net costs or gains. The second option is System A, which would result in additional sales of either $50,000 under good conditions or $10,000 under bad conditions. The final choice is System B, which would increase sales by $20,000 under both good and bad conditions. Suppose that good conditions are twice as likely as bad conditions. Which option should the company pursue if developing a system costs $25,000?

A company looking for venture capitalist funding is deciding on the design of its operating system (OS) for its new phone. The first option is to simply buy the OS from another company. This would result in sales of either 10,000 units if the market is not crowded with similar phones, or sales of only 3,000 units if the market is crowded. If the company decides to design its own OS, the phone would have sales of 70,000 units if the OS was popular, but sales of only 2,000 if the OS was a failure. Suppose that to recoup the cost of designing their own OS the company would need to sell twice as many phones as when they simply buy the OS for the profit from the scenarios to be equal. Which option should the company choose if the probability that the market is crowded is 50% and the probability that the OS is popular is 75%?